Market Profile​​IND may be appropriate for any financial institution seeking to diversify funding sources or to acquire large, relatively stable funding blocks ($25 million to billions of dollars) for the long term.​​

Solution

IND®, the Insured Network Deposits®Service

About INDIND
is the industry’s leading deposit sweep service. IND funding comes from
cash that is swept into banks from millions of brokerage accounts
across the nation; therefore, the funding is both geographically diverse
and relatively stable.

The IND
service enables financial institutions to access uncollateralized,
floating-rate funding in amounts ranging from $25 million to multiple
billions of dollars for terms of three to five years or more. The large
majority of these deposits can be classified as money market deposit
account (MMDA) deposits on a bank’s Call Report and, thus, are not
subject to reserves.

Banks select a target balance amount and Promontory Network works in
accordance with its agreement with the bank to allocate customer funds
to achieve average daily balances consistent with the target balance
amount. Pricing, which includes all settlement fees, is typically a set
spread over the Federal Funds Effective Rate or one-month LIBOR. There
are no hidden costs. Many banks compare this type of funding to issuing a
multi-year, floating-rate CD.

Banks settle on a daily basis, but do not pay settlement fees; the
total cost of funds is the rate agreed upon with Promontory Network. The
movement of funds between broker-dealers and banks is settled through
IND's settlement bank – The Bank of New York Mellon. Participating banks
account for IND balances on an “omnibus” level. Individual client
records are maintained and managed by the broker-dealer.

Provider

​​

Promontory Interfinancial Network is the leading provider of FDIC-insured deposit placement services. It offers ABA-endorsed Insured Cash Sweep®, CDARS®, IND®, and Bank Assetpoint®. These services enable banks and other financial institutions to work together to build loyal, large-dollar relationships by offering access to multi-million-dollar FDIC insurance; to replace higher-cost funding and/or repurpose collateral; to manage liquidity; to buy and sell funding; and to connect with buyers and sellers of bank assets.​

Contacts

ABA Contact

Promontory Interfinancial Network Contact

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